哈伯德微观经济学0课件3

1、Where Prices Come From:The Interaction of Demand and SupplyWhere Prices Come From:The In2 of 34 After studying this chapter, you should be able to:Discuss the variables that influence demand.Discuss the variables that influence supply.Use a graph to illustrate market equilibrium.Use demand and suppl

2、y graphs to predict changes in prices and quantities.Carly FiorinaHow Hewlett-Packard Managesthe Demand for PrintersLEARNING OBJECTIVES Because of the importance of printers to Hewlett-Packard, the company devotes significant resources to monitoring and forecasting consumer demand.12342 of 34 After

3、studying t3 of 34The Demand Side of the MarketThe Demand of an Individual BuyerLEARNING OBJECTIVE1Quantity demanded The quantity of a good or service that a consumer is willing to purchase at a given price.3 - 1Plotting a Price-Quantity Combination on a GraphAt a price of $125 per printer, Kate, the

4、 purchasing manager for the Prudential Insurance Company, will be willing to buy 5 printers in the next month.3 of 34The Demand Side of the 4 of 34The Demand Side of the MarketDemand schedule A table showing the relationship between the price of a product and the quantity of the product demanded.Dem

5、and curve A curve that shows the relationship between the price of a product and the quantity of the product demanded.Demand Schedules and Demand Curves3 - 2Kates Demand Schedule and Demand Curve4 of 34The Demand Side of the 5 of 34The Demand Side of the MarketIndividual Demand and Market DemandMark

6、et demand The demand for a product by all the consumers in a given geographical area.3 - 3Deriving the Market Demand Curve from Individual Demand Curves5 of 34The Demand Side of the 6 of 34The Demand Side of the MarketThe Law of DemandThe Law of Demand Holding everything else constant, when the pric

7、e of a product falls, the quantity demanded of the product will increases, and when the price of a product rises, the quantity demanded of the product will decrease.What Explains the Law of Demand?Substitution effect The change in the quantity demanded of a good that results from a change in price m

8、aking the good more or less expensive relative to other goods that are substitutes.Income effect The change in the quantity demanded of a good that results from the effect of a change in the goods price on consumer purchasing power.6 of 34The Demand Side of the 7 of 34The Demand Side of the MarketHo

9、lding Everything Else Constant:The Ceteris Paribus ConditionCeteris paribus (“all else equal”) The requirement that when analyzing the relationship between two variablessuch as price and quantity demandedother variables must be held constant.7 of 34The Demand Side of the 8 of 34The Demand Side of th

10、e MarketPrice of related goodsSubstitutes Goods and services that can be used for the same purpose.Complements Goods that are used together.IncomeNormal good A good for which the demand increases as income rises and decreases as income falls.Inferior good A good for which the demand increases as inc

11、ome falls, and decreases as income rises.TastesPopulation and demographicsDemographics The characteristics of a population with respect to age, race, and gender.Expected future pricesVariables That Shift Market Demand3 - 4Shifting the Demand Curve8 of 34The Demand Side of the 9 of 34Why Supermarkets

12、 Need to Understand Substitutes and Complements3 - 1A supermarket shouldnt remove a slow-selling soup from its shelves without researching whether shoppers use that soup as a substitute or a complement for another soup.COFFEEFROZENPIZZAHOTDOGSICECREAMPOTATOCHIPSREGULARCEREALSPAGHETTISAUCEYOGURTVarie

13、ties in FiveChicagoSupermarkets391337128421285242194288VarietiesIntroducedin a 2-Year Period113109471299311470107Varieties Removedin a 2-Year Period1358632118777536519 of 34Why Supermarkets Need t10 of 34Companies Respond to a Growing Hispanic Population3 - 2Firms are responding to the tastes of a g

14、rowing Hispanic population. Some Home Depot stores, for example, include signs in both English and Spanish.10 of 34Companies Respond to a11 of 34The Demand Side of the MarketVariables That Shift Market DemandVariables That Shift MarketDemand Curves3 - 111 of 34The Demand Side of the12 of 34The Deman

15、d Side of the MarketVariables That Shift Market DemandVariables That Shift MarketDemand Curves3 - 1 (continued)12 of 34The Demand Side of the13 of 34The Demand Side of the MarketA Change in Demand versus a Change in Quantity Demanded3 - 5A Change in Demand versus a Change in the Quantity Demanded13

16、of 34The Demand Side of the14 of 34Estimating the Demand for Printers at Hewlett-Packard3 - 3Inaccurate forecasts in 2001 caused Hewlett-Packard to produce more printers than they could sell.14 of 34Estimating the Demand 15 of 34The Supply Side of the MarketQuantity supplied The quantity of a good o

17、r service that a firm is willing to supply at a given price.LEARNING OBJECTIVE2Supply schedule A table that shows the relationship between the price of a product and the quantity of the product supplied.Supply curve A curve that shows the relationship between the price of a product and the quantity

18、of the product demanded.Supply Schedules and Supply Curves15 of 34The Supply Side of the16 of 34The Supply Side of the Market3 - 6Hewlett-Packards SupplySchedule and Supply Curve16 of 34The Supply Side of the17 of 34The Supply Side of the MarketIndividual Supply and Market Supply3 - 7Deriving the Ma

19、rket Supply Curve from the Individual Supply Curves17 of 34The Supply Side of the18 of 34The Supply Side of the MarketThe Law of SupplyLaw of supply Holding everything else constant, increases in price cause increases in the quantity supplied, and decreases in price cause decreases in the quantity s

20、upplied.18 of 34The Supply Side of the19 of 34The Supply Side of the MarketPrice of inputsTechnological changeA positive or negative change in the ability of a firm to produce a given level of output with a given amount of inputs.Prices of substitutes in productionExpected future pricesNumber of fir

21、ms in the marketVariables That Shift Supply 3 - 8Shifting the Supply Curve19 of 34The Supply Side of the20 of 34The Supply Side of the MarketVariables That Shift SupplyVariables That Shift MarketSupply Curves3 - 220 of 34The Supply Side of the21 of 34The Supply Side of the MarketVariables That Shift

22、 SupplyVariables That Shift MarketSupply Curves3 - 2 (continued)21 of 34The Supply Side of the22 of 34The Difference between a Change in Supply versus a Change in the Quantity SuppliedThe Supply Side of the MarketA Change in Supply versus a Change in Quantity Supplied3 - 922 of 34The Difference betw

23、een23 of 34Market Equilibrium: Putting Demand and Supply TogetherLEARNING OBJECTIVE3Market equilibrium A situation where quantity demanded equals quantity supplied.Competitive market equilibrium A market equilibrium with many buyers and many sellers.3 - 10Market Equilibrium23 of 34Market Equilibrium

24、: P24 of 34Market Equilibrium: Putting Demand and Supply TogetherHow Markets Eliminate Surpluses and ShortagesSurplus A situation in which the quantity supplied is greater than the quantity demanded.Shortage A situation in which the quantity demanded is greater than the quantity supplied.3 - 11The E

25、ffect of Surpluses and Shortages on the Market Price24 of 34Market Equilibrium: P25 of 34 Demand and Supply Both Count: A Tale of Two Letters3 - 1LEARNING OBJECTIVE3Although the demand for Lincolns letters is greater than Booths, the supply of Booths letters is much smaller, which explains why the e

26、quilibrium price for Booths letters is higher.25 of 34 Demand and Supply Bot26 of 34LEARNING OBJECTIVE4The Effect of Shifts in Supply on Equilibrium3 - 12The Effect of a Decrease in Supply on EquilibriumThe Effect of Demand and Supply Shifts on Equilibrium26 of 34LEARNING OBJECTIVE4The27 of 34The Fa

27、lling Price of LargeFlat-Screen TelevisionsCornings breakthrough spurred the manufacture of LCD televisions in Taiwan, South Korea, and Japan, and an eventual decline in price.3 - 427 of 34The Falling Price of L28 of 34The Effect of Shifts in Demand on Equilibrium3 - 13The Effect of an Increase in D

28、emand on EquilibriumThe Effect of Demand and Supply Shifts on Equilibrium28 of 34The Effect of Shifts i29 of 34The Effect of Shifts in Demand and Supply over Time3 - 14Shifts in Demand and Supply over TimeThe Effect of Demand and Supply Shifts on Equilibrium29 of 34The Effect of Shifts i30 of 34The Effect of Shifts in Demand and Supply over Time3 - 13The Demand for Chicken Has Increased MoreThan the SupplyThe Effect of Demand and Supply Shifts on Equilibrium30 of 34The Effect of Shifts i31 of 34 High Demand and Low Prices in the Lobster Market?3 - 2LEARNING OBJECTIVE4Supply and de